Ultimate guide to learn about the lending options available and the mortgage process
Check out program requirements to see if you qualify
Must apply through JR Burns with Prosperity Home Mortgage
Prosperity Home Mortgage offers downpayment and/or closing cost assistance in the form of a lender grant to qualified applicants who are purchasing or refinancing a primary residence in an eligible Census Tract within the greater Philadelphia, Wilmington, and Camden areas.
Determine Property Eligibility to see if your property may qualify.
To learn more about the program, visit AG Redlining Settlement
NOTE: This funding can be used in conjunction with Delaware State Housing Authority (DSHA) downpayment programs.
up to $10,000 for low and moderate income households
The term for repayment of the DPS loan will be 15 years - for the first 2 years payments will be deferred and monthly payments will begin in year 3.
Lesser of $15,000 assistance or up to 6% of purchase price
For first-time homebuyers - defined as persons who have not owned a home in the past three (3) years OR displaced homemakers and single parents.
A minimal contribution of $1,000 is required from the buyer.
Income limits apply - CLICK HERE.
up to $20,000 (while funds available) for low and moderate income households
Must complete homeownership counseling with a HUD certified Housing Counseling Agency
Buyer must have at least $1,000 cash of their own money (excluding gift money) and the home to be purchased must be your primary residence.
Apply directly through local HUD certified Housing Counseling Agency.
The American Rescue Plan Act (ARPA) & Sussex County Council fund the Homebuyer Assistance Program can be used to purchase single-family homes, duplexes, townhomes, manufactured homes on permanent foundations, modular homes, or new construction homes in SUSSEX COUNTY.
Liquid assets must not exceed $15,000 within 3 months of application.
Apply directly through a participating local lender.
3% downpayment and closing cost assistance at 0% interest.
The repayment will be deferred until: refinance, sale of home, transfer of title, and the property is no longer the borrower(s) primary residence (whichever comes first).
Apply directly through a participating local lender.
Applicants will be provided 5% of their final loan amount, applicants(s) must meet the qualifications of the Diamond in the Rough Program.
Apply directly through a participating local lender.
In Delaware, typically EVERYONE within guidelines is eligible for our down payment programs - both repeat buyers and first-time buyers.
However, we do have various tax exemption credits specifically for first-time homebuyers and seniors.
Applicable cities: Wilmington, Elsmere, Newark*, Arden, Dover, Milford, Felton, Delmar, Laurel, Seaford
Realty transfer taxes are typically shared equally by the buyer and the seller.
All first-time home buyers are entitled to a 1/2 percent (0.5%) reduction in the rate paid by the buyer, claimed at the time of closing.
To qualify for the reduced rate, the real estate must be purchased by one or more individuals who have never held any direct legal interest in residential real estate, and who intend to live in the property as their principal residence within 90 days after the closing.
If you meet these qualifications, the attorney handling the purchase of your new home will reflect the reduced rate on the form that is prepared and signed at closing.
To learn more, visit Tax Credit page of DE Dept of Finance.
Application Deadline is April 30th
Homeowners age 65 or over are eligible for a tax credit against regular school property taxes of 50 percent (up to $500).
This credit may only be used against property taxes on a primary residence.
Delaware Residency Requirement
Established on or before 12/31/2012:
Immediately eligible upon age 65.
Between 01/01/2013 to 12/31/2017:
Must have legally domiciled within the State for a period of at least 3 consecutive years in order to be eligible to receive a credit.
Established on or after 01/01/2018:
Must be legally domiciled within the State for a period of at least 10 consecutive years in order to be eligible to receive a credit.
NOTE
Taxpayers must pay their property tax bill in full by the end of each tax year in order to qualify for this credit for the subsequent property tax year.
To qualify, a copy of a valid driver’s license or official state ID is required for each applicant at the time of application.
Resource(s):
To learn more, visit Senior Relief page of DE Dept of Finance.
Know Our Numbers
Rest assured you are in capable hands, and we are dedicated to assisting you in achieving your real estate goals. Owning your own home is a significant and rewarding experience, and we are here to guide you through the process with expertise and dedication.
NOTE: You do NOT have to put 20% down; however, at that threshold private mortgage insurance (PMI) is no longer required.
Available through a private lender or the government-sponsored enterprises (GSEs): Fannie Mae and Freddie Mac
Buyers purchasing in a state different from your employer may be required to purchase as a secondary home for underwriting purposes due to commuting distance - even though it will serve as their primary residence.
Maximum Seller Contribution Allowed
If putting 3% to 10% down, then up to 3% seller assistance is allowed.
If putting 10% to 25% down, then up to 6% seller assistance is allowed.
If putting 25% or more down, then up to 9% seller assistance is allowed.
This would be for non-owner occupied conventional loans
Maximum Seller Contribution Allowed
When providing at least 20% down, then up to 2% seller assistance is allowed.
NOTE: Minimum 3.5% downpayment mandatory
A mortgage backed by the Federal Housing Administration.
This means if you default on mortgage payments, the FHA will help reimburse your mortgage lender.
May qualify with a 580 credit score and a debt-to-income ratio of 43% or less.
Maximum Seller Contribution Allowed
By putting at least 3.5% down, then up to 6% seller assistance is allowed.
The Department of Veterans Affairs (VA) offers loan programs to help service members, veterans, and their families buy homes.
There are more than 1.3 million active-duty members worldwide - with about 87% stationed within the United States! Their dependents outnumber active-duty personnel, totaling over 1.6 million across all service branches. 1, 2, 3
The VA sets the rules for loan qualification, arranges the terms under which mortgages may be offered, and guarantees any loan made under the program.
The funding fee can be financed in the loan for 100% financing; however:
First-time use: 2.15% fee
Subsequent use: 3.3% fee
Maximum Seller Contribution Allowed
If putting 0% down, then up to 4% seller assistance is allowed.
NOTE: Requesting additional assistance can be frowned upon as this loan offers additional financial incentives for affordability.
Cited Resources
1 Armed Forces Strength Figures for January 31, 2019, DoD Personnel, Workforce Reports & Publications, www.dmdc.osd.mil/appj/dwp/dwp_reports.jsp2
2 DMDC Location Report 1809, November 2018, DoD Personnel, Workforce Reports & Publication, https://www.dmdc.osd.mil/appj/dwp/dwp_reports3
3 2017 Demographic Profile of the Military Community, Office of the Deputy Under Secretary of Defense (Military Community and Family Policy), U.S. Department of Defense, http://download.militaryonesource.mil/12038/MOS/Reports/2017-demographics-report.pdf
0% down Rural Development [Section 502 Direct Loan Program]
This program helps low- and very-low-income applicants buy decent, safe, and sanitary housing in eligible rural areas by providing payment assistance to increase their applicant's repayment ability.
Must apply directly with HUD-certified Housing Counseling Agency.
Maximum Seller Contribution Allowed
If putting 0% down, then up to 6% seller assistance is allowed.
Can apply with any eligible private lender as USDA backs each loan against default.
Maximum Seller Contribution Allowed
If putting 0% down, then up to 6% seller assistance is allowed.
Section 203(k) insures mortgages covering the purchase and rehabilitation of a home that is at least a year old. At closing, funds are disbursed for the home purchase based on previously submitted and accepted contractor bids, renovation funds are placed by the lender in an escrow.
203k loans require more paperwork, inspections, and oversight than a conventional mortgage.
This makes for a more demanding process and 203k loans typically come with higher upfront fees, interest rates, and closing costs due to their more complicated structure.
See New Construction options.
This refers to single-wide mobile homes, manufactured homes on leased land, land acquisitions, hard money lenders, and commercial or agricultural loans.
EXCLUSIONS: Seller financing and Rent to Own
Jumbo mortgages are loans that amount to more than conventional conforming loan limits set by Fannie Mae and Freddie Mac.
The current limit is $766,550.
To qualify:
Provide at least 20% down payment (or have at least 20 percent equity in a refinance).
Monthly DTI not to exceed 38 percent of your income before taxes.
Here is a list of documents to collect and provide to your lender
Year-to-Date Profit & Loss Statement for businesses owned
Year, make, and model of any vehicles, boats, etc. (owned and/or leased)
If you wish to have alimony considered for income, please provide a copy of the divorce decree and separation agreement.
If you have court-ordered child support and/or receive payments, inquire directly with the lender for the documentation needed.
Inquire with the lender directly for the documentation needed
Petition and Discharge letter
Provide copies of all schedules (D, E, F, and any others)
Inquire with the lender directly for the documentation needed
Provide a signed and dated letter from the donor stating that the funds are a gift and that repayment is not required.
The donor may need to provide the most recent month’s bank statement or other evidence to prove their ability to make a gift in such an amount.